Page 58 - Obligations & Contracts Module 1-2

OBLIGATION CREATED BY THE RESCISSION OF THE CONTRACT: Mutual Restitution

1. Things w/c are the objects of the contract & their fruits

2. Price with interest

*Note: Mutual restitution/restoration “Not Applicable” when:

1. creditor did not receive anything from contract

2. thing already in possession of party in good faith; subject to indemnity only; if there

are 2 or more alienations – liability of 1st infractor

2. VOIDABLE CONTRACTS – intrinsic defect; valid until annulled; defect is due to vice of

consent or legal incapacity

*CHARACTERISTICS OF VOIDABLE CONTRACTS :

a. Effective until set aside

b. May be assailed or attacked only in an action for that purpose

c. Can be confirmed

( Note: Confirmation is the Proper Term for Curing the Defect of a Voidable Contract)

d. Can be assailed only by the party whose consent was defective or his heirs or assigns

*WHAT CONTRACTS ARE VOIDABLE?

A. Where one of the Parties is Incapable of Giving Consent to a Contract (legal incapacity)

(1) minors ( below 18 )

(2) insane unless acted in lucid interval

(3) deaf mute who can’t read or write

(4) persons specially disqualified: civil interdiction

(5) in state of drunkenness

(6) in state of hypnotic spell